By Alexander Ratz
BERLIN, Dec 8 (Reuters) – German Foreign Minister Johann Wadephul said he had made progress in persuading Beijing to grant rare earth export licenses to German manufacturers during his visit on Monday, but signalled they did not receive any from the first batch issued.
Chinese export controls on the 17 minerals used in areas as varied as autos, consumer electronics and defence had caused months of disruption since their April introduction due to the U.S.-China trade war.
Reuters reported last week that China issued its first “general licences” – year-long permits aimed at speeding up exports – after a breakthrough in a summit between Presidents Donald Trump and Xi Jinping. But it remains unclear whether these will only benefit the United States.
Asked by broadcaster ZDF during his two-day trip to China whether he had made progress in persuading Beijing to grant German firms licenses too, he said: “We have received signals but there is still quite a lot of work to be done.”
Wadephul said he had discussed the key issue of disruptions in Chinese deliveries of semiconductors, rare earths and other commodities in his meetings on Monday with the Chinese trade minister.
“In all of these areas there has been uncertainty, and that needs to be eliminated,” said Wadephul, who is accompanied in China by a small business delegation including Hildegard Mueller, head of the automotive industry association VDA.
Mueller separately urged the EU to take a “more proactive approach” towards China on the issue.
(Reporting by Sarah MarshAdditional reporting by Christoph Steitz; Editing by Toby Chopra)
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